Case Note & Summary
The judgment concerns multiple notices of motion filed by Axis Bank Limited seeking to be joined as a party in various suits filed by flat purchasers (Padma Ashok Bhatt, Om Project Consultants and Engineers Limited, Madhav Prasad Aggarwal, Manisha Saraf, Niraj Dilip Jiwrajka) against M/s. Orbit Corporation Ltd. and others. The suits sought specific performance of agreements for sale and injunctions against the developer. Axis Bank claimed that the subject properties were mortgaged to it and that any decree passed in the suits would affect its mortgagee rights. The bank argued that it had a right to be heard before any order affecting its interest was passed. The plaintiffs opposed the applications, contending that the bank was not a necessary party. The court, after hearing submissions, held that the bank, as a mortgagee, has a right to be heard and to protect its interest. The court allowed the bank's applications for joinder under Order I Rule 10 of the Code of Civil Procedure, 1908, noting that the bank's presence would enable it to present its case and ensure that no order is passed behind its back. The court directed that the bank be added as a defendant in each suit and be permitted to file its written statement. The judgment emphasizes the principle of natural justice and the right of a person whose interest may be affected by a decree to be heard.
Headnote
A) Civil Procedure - Joinder of Parties - Right to be Heard - Order I Rule 10, Code of Civil Procedure, 1908 - Mortgagee bank sought to be joined as a party in suits filed by flat purchasers against developer for specific performance and injunction - Court held that the bank has a right to be heard to protect its mortgage interest, as any decree affecting the property would impact the bank's security - Allowed the bank's applications for joinder (Paras 1-16).
Issue of Consideration
Whether Axis Bank, as a mortgagee, has a right to be heard and be joined as a party in suits filed by purchasers against the developer, where the subject property is mortgaged to the bank.
Final Decision
The court allowed the applications of Axis Bank to be joined as a party in each of the suits. The bank is to be added as a defendant and permitted to file its written statement.
Law Points
- Right to be heard
- Mortgagee's interest
- Joinder of parties
- Order I Rule 10 CPC
- Natural justice
